The document outlines the role and vision of IFAC (International Federation of Accountants) as a global organization representing over 2.8 million accountants worldwide, aiming to serve the public interest through high-quality standards and advocacy. It highlights the crucial importance of a vibrant accountancy profession in promoting economic development, enhancing transparency, and supporting effective governance. Additionally, it addresses the need for continuous professional development and collaboration among stakeholders to ensure relevance and effectiveness in accounting practices.

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The Accountancy Profession –
Adding Value Globally, Regionally
and Locally
Alan Johnson
IFAC Board Member
South Asian Federation of
Accountants / IFAC PAIB Forum
Mumbai, 23 April 2016

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IFAC and Our
Profession

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What is IFAC?
• Global organisation for the accountancy profession
• Founded in 1977
• More than 175 members and associates, 130 countries
• Representing more than 2.8 million accountants globally
• Accountants working in public practice, education,
government, industry & commerce
• IFAC is at the heart of the entire accountancy eco-system
• Delivers public value, working always in the public interest

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IFAC’s Vision
A global accountancy
profession recognised as a
valued leader in the
development of strong and
sustainable organisations,
financial markets & economies.

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IFAC’s Mission
To serve the public interest by …
– contributing & facilitating the development and adoption of high
quality standards and guidance
– contributing to the development of strong professional accountancy
organisations & accounting firms and high quality practices for
professional accountants
– promoting the value of professional accountants worldwide
– speaking out on public interest issues

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Accountants are Crucial
IFAC believes that the world
needs a strong & vibrant
accountancy profession of highly-
trained ethical accountants to
protect the public interest …
– to promote economic activity &
development
– that will lead to responsible &
effective governments
– thus building overall confidence in
the global financial system

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IFAC 2016-2018 Strategic Plan
Charting the Future of the Global Profession
Strategic Objectives—
Strengthening the profession in the
public interest
− International Standards Support
− Global Accountancy Profession
Support
− Global Accountancy Profession
Development

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• IFAC member organizations grew 16% (2.4m to 2.8m)
• 1/3 of IFAC members in Asia
• Employment of IFAC member
organizations:
− Business & Industry: 5%
− Public Practice: 45%
− Public Sector: 8%
− Academia / Education: 2%
• Data shows significant opportunity for our profession
Nexus 1: The Accountancy Profession,
Behind the Numbers

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• Economic development, improved living
standards linked to a robust
accountancy profession
• Economic contribution of the
global accountancy ecology
is $575 bn
− IFAC member organizations
contribute $248 bn
• Contribution from Asia has
a huge potential to grow
Nexus 2: The Accountancy Profession –
A Global Value-Add

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When PAOs
function
effectively they
further the
quality of
financial
management and
reporting, which
in turn…
• attracts foreign direct investment;
• promotes growth and development of
the small- and medium-sized sector;
• enhances transparency and
accountability in the use of resources
in both private and public sectors;
• improves the delivery of vital public
services; and
• enhances the effectiveness and
efficiency of official development
assistance.
Developing the Profession is Crucial

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A Profession Relevant to
Professional Accountants
in Business

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A Place to Start: What is a PAIB?
• Professional accountant working in:
– business and industry
– public and not-for-profit sectors
– education
• In:
– finance and accounting
– operations
– internal audit
– Compliance
– Reporting
– investor relations

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PAIBs:
• Work in an environment together with other professionals
• Not always connected with their member body, thus
creating an identity and recognition problem
• Often perceived as “back office” support rather than
adding value in “performance” roles
Professional mindset and skills applied in a very
different environment than public practice –
we need to be prepared!
PAIBs: A Unique Set of Challenges

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Key Business Challenges Facing PAIBs
• Speed of change and keeping
up-to-date
• Fulfilling employer expectations
to balance stewardship/compliance
and entrepreneurial roles
• Being transparent and ethical
under pressure
• Navigating fragmented career paths
• Acquiring broader professional skills and capabilities that
enable our full contribution to organizations

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Supporting PAIBs is an Opportunity
• Provide relevance through:
– Certification and training/education programmes: ensure a relevant
professional skillset for professional accountants
– Advocate the value proposition of the profession and
professionalization
– Support services valued by PAIBs
• Achieving relevance requires a collective effort – between
PAOs, regional bodies and IFAC
• Ensure PAIBs have status in the profession
• Use your members as a force for change!

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IFAC and SAFA
Working together to ensure a profession relevant
to PAIBs by:
− Identifying trends and priorities for
the profession
− Sharing knowledge on emerging
themes and issues
− Equipping PAOs to better support
their PAIBs
− Advocacy: Identifying significant opportunities
to place PAIBs and PAIB issues in the spotlight

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Relevant PAIB
Focus Areas

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• The profession’s role in the Global Goals for Sustainable
Development
• Our global profession means we can speak with one voice
on issues that are relevant to society, everywhere
• We need to act in the public interest in everything we do
• Our training and continuous development ensures we
remain relevant
• Our collaborative ways of working mean our influence is
widespread and our advice is sought and respected
Focus Area: The Role of Accountants in Society

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PAIBs delivering effective governance
and risk management
– Managing risk as an integral part of
managing an organization
– Achieving business objectives as well as
ensuring compliance
– Responding to changes in the business
environment
– Understanding the nature of risks and the
impact on the organization
Focus Area: Effective Governance, Risk & Control
It is not about avoiding risks or being risk averse, it is
about managing risks effectively

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• Audit quality a joint responsibility between auditor and
organization
• A quality team of audit professionals
Audit is not a commodity service.
A quality audit is unlikely to be cheap.
• Honest and transparent communication between all
parties in the financial reporting supply chain
− efficient financial reporting timetable
− continuous communication
• A strong internal control environment
• A strong and independent internal audit function
Focus Area: Enhancing Audit Quality

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Focus Area: High-Quality Financial Reporting
• Financial reporting is the bedrock:
– Staying on top of developments in financial reporting e.g.,
leases/revenue recognition and ensuring high quality
financial reporting
High-quality financial statements
prepared and audited using global
standards help support the
continued growth and diversification
of the region's economy.

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• Addresses problems of corporate reporting system
• Capital providers & stakeholders
want to better understand value
creation and preservation
• Provides an opportunity to
– Create value
– Tell the story
• Integrated thinking unlocks change
in mindset and create real change
PAIBs: ideally positioned to facilitate
integrated thinking
Integrated Reporting: Communicating Value Creation

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Other Focus Areas
• Trends impacting the finance function and implications for
the global profession and PAOs
– Outsourcing/offshoring
– Finance business partnering, career pathways and
talent acquisition
– Digital technology and the effects of automation

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Other Focus Areas
• High performing public sector
– Accountability Now initiative to improve financial reporting &
transparency
– Enhancing public sector governance & accountability
• Combatting fraud and corruption
• Corporate taxation
• Encouraging smart regulation

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Final Thoughts
• IFAC plays an essential role in promoting a strong and
robust accountancy profession
• Everything we do is working entirely in the public interest
• We speak out on key issues on behalf of the profession
• We support capacity building of the global accountancy
profession
• Together with our member organizations we play a role in
supporting all accountants to succeed in their careers
• We contribute to global economic growth and
development which have wide societal benefits

26. www.ifac.org